Always Pay Yourself First
It is the end of the month (or pay day) and you receive your paycheck, what do you do?How do you start your spending? Who do you pay first?
If you are like most salary earners I know, you will probably pay everyone else first—your creditors, rent, utilities, down payments, groceries, etc. Then, once you are done with this spending routine, you stick whatever you have left (if anything) into your savings. That is the typical “paying yourself last” scenario.
And, what next?
Wait patiently again for your next paycheck and repeat the process all over again. This is what creates the ‘Rat Race’.
But, to pay yourself first, set aside a specific amount of money right off the money you earned, and then live off what is leftover. This is not a call to de-prioritize your bills but to set up a budget that incorporates you at once, then go ahead and spend accordingly.
And that’s how wealth grows.
